March 10, 2015

SECURITIES AND EXCHANGE COMMISSION

SEC Building, EDSA Greenhills,
Mandaluyong City, Metro Manila
ATTENTION

DIR. VICENTE GRACIANO P. FELIZMENIO JR.,

Director, Markets and Securities Regulation Department

PHILIPPINE STOCK EXCHANGE, INC.

3rd Floor, Philippine Stock Exchange Plaza
Ayala Triangle, Ayala Avenue, Makati City
ATTENTION

MS. JANET ENCARNACION

Head, Disclosure Department

PHILIPPINE DEALING & EXCHANGE CORP.

Market Regulatory Services Group
37/F, Tower 1, The Enterprise Center
6766 Ayala Avenue corner Paseo de Roxas, Makati City
ATTENTION

MS. VINA VANESSA S. SALONGA

Head - Issuer Compliance and Disclosures Department

Gentlemen:
On behalf of Aboitiz Power Corporation (AboitizPower), we submit for your files the following
documents:
(a) SEC Form 17-C (Current Report) its Full Year 2014 Financial and Operating Results; and
(b) Press Release dated March 10, 2015.
Kindly acknowledge receipt hereof.
Thank you.
Very truly yours,
ABOITIZ POWER CORPORATION
By

M. JASMINE S. OPORTO
Corporate Secretary

COVER SHEET
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9 9 8 0 0 1 3 4
S.E.C. Registration Number
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A T I O N
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( Company's Full Name )

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(Business Address: No. Street City / Town / Province )

M. JASMINE S. OPORTO
Contact Person
Contact Person

02- 886-2729
Company Telephone Number

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3 1
Month
Day
Fiscal Year

3rd Monday of
May
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1 8
Month
Day
Annual Meeting

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FORM TYPE

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Secondary License Type, if Applicable
SEC
Dept. Requiring this Doc

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Total No. of Stockholders
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Foreign
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SECURITIES & EXCHANGE COMMISSION

SEC FORM 17-C
CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE (SRC)
AND SRC RULE 17.2(c) THEREUNDER
1.

March 10, 2015

Date of Report (Date of earliest event reported)

2.

SEC Identification Number C199800134

4.

ABOITIZ POWER CORPORATION

Exact name of registrant as specified in its charter

5.

Philippines
Province, country or other jurisdiction
of incorporation

7.

32 Street, Bonifacio Global City, Taguig City, Metro Manila, Philippines

Address of principal office

8.

(02) 886-2800
Registrants telephone number, including area code

9.

N.A.
Former name or former address, if changed since last report

10.

Securities registered pursuant to Sections 4 and 8 of the RSA

Common Stock P1 Par Value

Amount of Debt Outstanding

BIR TIN 200-652-460

6.
Industry Classification Code

nd

Title of Each Class

11.

3.

1634
Postal Code

Number of Shares of Common Stock

Outstanding and Amount of Debt Outstanding
(As of September 30, 2014)
7,358,604,307
P93,068,903,000.00

Indicate the item numbers reported herein: 9

Item 9:

Other Events

Aboitiz Power Corporation (AboitizPower or the Company) recorded a decline of 18% year-on-year
(YoY) in its consolidated net income for the quarter ending December 31, 2014, from P4.3 billion (bn)
to P3.5 bn. The Company registered a non-recurring gain of P73.3 million (mn) (versus last years loss
of P23.3 mn) due to the revaluation of consolidated dollar-denominated liabilities and placements
resulting from the movements in the peso-dollar exchange rates. Without the one-off loss,
AboitizPowers core net income for the fourth quarter of 2014 amounted to P3.4 bn, which is 21%
lower YoY.
On a year-to-date (YTD) basis, AboitizPowers income performance recorded a 10% YoY decrease,
from P18.6 bn to P16.7 bn. This translated to earnings per share of P2.27. The Company registered a
non-recurring loss of P135.6 mn (versus last years loss of P1,547.2 mn) during the year. This was
mostly due to the revaluation of consolidated dollar-denominated loans and placements. Adjusting
for these one-offs, the Companys core net income for 2014 amounted to P16.8 bn, down by 16% YoY.

Business Segments
Power Generation
For the quarter ending December 31, 2014, the power generation business recorded an income
contribution of P2.7 bn, 14% lower as compared to the same period last year. When adjusted for
non-recurring items, the group registered a 27% YoY decrease in its core net income, from P3.6 bn to
P2.6 bn. While the Pagbilao plant registered a positive income contribution versus a net loss last year
resulting from its power purchases in the fourth quarter of 2013 as it underwent a forced outage at
the time, this was not enough to offset the decline in quarterly earnings of the large hydro and
geothermal groups during the quarter.
On a full-year basis, the generation business accounted for 81% of earnings contributions from
AboitizPowers business segments, recording an income share of P13.5 bn for 2014, down 11% YoY.
The decline is attributed to the full-year impact of the implementation of the Geothermal Resource
Supply Contract of the Tiwi-Makban plants, limited operations of Magat plant due to low water levels,
and the expiration of the Pagbilao and Magat plants income tax holiday during the year. The large
hydros also were adversely impacted by lower average prices for both its spot and ancillary sales.
Netting out one-off items, AboitizPowers generation business generated P13.6 bn for the period,
which was 21% lower than last year.
For full year 2014, AboitizPowers attributable net generation rose by 3% YoY, from 10,949 GWh to
11,272 GWh, as electricity sold through bilateral contracts, which made up 86% of total energy sold
during the period, expanded by 7% to 9,661 GWh. On the other hand, spot market sales decreased by
16% from 1,914 GWh to 1,612 GWh as low water levels during the dry season constrained the
operations of the Magat, Ambuklao, and Binga plants.
In terms of capacity, higher sales through bilateral contracts and ancillary services resulted to a 13%
YoY increase in AboitizPowers attributable sales to 1,800 MW. The growth was partly driven by
Therma Mobile, Inc., which was only able to offer its full capacity of 200 MW in the second quarter of
2014. While ancillary sales were weak in the second quarter again due to the dry season, the
increase in water levels in the second half of 2014 as a result of the typhoons has led to a strong
recovery in ancillary sales during the last six months of the year.
The groups average price for its energy sales decreased by 3% YoY in 2014. This was mainly due to
the 21% YoY decrease in the average selling price of the groups spot sales. Notwithstanding the
increase in ancillary volume sales, revenues were also down as a result of a 39% decrease in average
ancillary rates.
The Company is targeting the full commissioning of its 14 MW Sabangan hydro plant and 260 MW
(net) Davao coal plant around the first half of 2015. Combined with the 40 MW strip from Unified
Leyte that was awarded earlier by Power Sector Assets and Liabilities Management Corporation
(PSALM) to a subsidiary of AboitizPower, the Companys net attributable sellable capacity will
increase by 14% from 2,210 MW to 2,524 MW in 2015.
Power Distribution
For the period October to December 2014, the power distribution group registered a 10% YoY
decrease in its income contribution, from P798.2 mn to P720.9 mn. AboitizPowers attributable
electricity sales for the quarter increased by 12% to 1,181 GWh from 1,052 GWh a year ago, with the
residential, commercial and industrial segments registering notable sales growth of 4%, 6% and 17%
respectively. However, the increase in sales was not enough to offset the decrease in margins
resulting from the need to run Davao Light & Power Company, Inc. (Davao Light) and Cotabato Light &
Power Companys (Cotabato Light) embedded plants during the quarter.
The power distribution groups earnings share for 2014 remained flat from a year ago at P3.2 bn. This
is equivalent to 19% of earnings contributions from AboitizPowers business segments. Total

attributable electricity sales increased by 10% YoY, from 4,076 GWh to 4,480 GWh as energy sales to
industrial customers grew by 15% YoY. The acquisition of Lima Utilities Corporation (now Lima
Enerzone Corporation) last June 2014 also provided a modest contribution to the improvement in
sales. On the other hand, the groups gross margin on a per kwh basis in 2014 decreased to P1.71
from P1.77 a year ago. The unfavorable variance was brought about by the higher direct costs
incurred by Davao Light and Cotabato Light due to the running of their embedded plants to cover for
the energy shortfall in the Mindanao grid.
Financial Condition
As of December 31, 2014, the Companys total consolidated assets amounted to P216.8 bn, 12%
higher than the year-end 2013 level of P193.9 bn. The Companys consolidated Cash and Cash
Equivalents was at P40.2 bn, while total consolidated interest-bearing liabilities was at P97.3 bn.
Equity Attributable to Equity Holders of the Parent increased by 5% to P92.0 bn from the year-end
2013 level. As of December 31, 2014, the Companys current ratio was at 3.4x (versus year-end
2013s 2.9x), while net debt-to-equity ratio was at 0.6x (versus year-end 2013s 0.5x).

SIGNATURE (S)
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.

ABOITIZ POWER CORPORATION

By

M. JASMINE S. OPORTO
Corporate Secretary

Date: March 10, 2015

PRESS RELEASE
March 10, 2015

ABOITIZPOWER REPORTS P16.7B NET INCOME FOR 2014,

DECLARES CASH DIVIDEND OF P1.66 PER SHARE
Aboitiz Power Corporation (AboitizPower) reported a 10% YoY decrease in its consolidated net income from
P18.6B in 2013 to P16.7B in 2014. This translated to earnings per share of P2.27. Adjusting for one-offs, the
Companys core net income for 2014 amounted to P16.8B, down by 16% YoY.
AboitizPower also declared a cash dividend of P1.66 per share, to be paid out on April 20, 2015 to shareholders
on record as of March 24, 2015. This represents a dividend yield based on yesterday's closing price equivalent
to 3.7%.
On a full-year basis, the generation business accounted for 81% of earnings contributions from AboitizPowers
business segments, recording an income share of P13.5B for 2014, down 11% YoY. The decline is attributed to
the full-year impact of the implementation of the Geothermal Resource Supply Contract of the Tiwi-Makban
plants, limited operations of Magat plant due to low water levels, and the expiration of the Pagbilao and
Magat plants income tax holiday during the year. The large hydros also were adversely impacted by lower
average prices for both its spot and ancillary sales. Netting out one-off items, AboitizPowers generation
business generated P13.6B for the period, which was 21% lower than last year.
The Company is targeting the full commissioning of its 14 MW Sabangan hydro plant and 260 MW (net) Davao
coal plant around the first half of 2015. Combined with the 40 MW strip from Unified Leyte that was awarded
earlier by PSALM to a subsidiary of AboitizPower, the Companys net attributable sellable capacity will increase
by 14% from 2,210 MW to 2,524 MW in 2015.
We see ourselves as an integral partner in nation building, which is why we are consistently increasing our
capacity and exploring new sources of energy, said AboitizPower Chief Executive Officer Erramon Aboitiz.
We will continue to pursue development and other suitable opportunities both nationally and abroad. We
will do this by leveraging on our expertise to maximize local opportunities and expand overseas via strategic
partnerships, he added.
The power distribution groups earnings share for 2014 remained flat from a year ago at P3.2B. This is
equivalent to 19% of earnings contributions from AboitizPowers business segments. Total attributable
electricity sales increased by 10% YoY, from 4,076 GWh to 4,480 GWh as energy sales to industrial customers
grew by 15% YoY. The acquisition of Lima Utilities last June 2014 also provided a modest contribution to the
improvement in sales. On the other hand, the groups gross margin on a per kwh basis in 2014 decreased to
P1.71 from P1.77 a year ago. The unfavorable variance was brought about by the higher direct costs incurred
by Davao Light and Cotabato Light due to the running of their embedded plants to cover for the energy
shortfall in the Mindanao grid.
Our vision is to operate an electric distribution network that optimizes the latest technology to improve
reliability, flexibility and efficiency in the delivery of electric service to and for the benefit of our customers,
said Aboitiz.
On the subject of the looming energy shortfall, he added that AboitizPower believes the ILP will not only turn
out to be a very cost effective way in addressing the projected power deficit this year, but will more
importantly serve as a permanent reserve we can tap in the future. We have seen it work successfully in our
business units in Cebu and Davao.

AboitizPower, along with its partners, remains committed to increase capacity by 2,000 MW in the next five
years. The expansion includes the 420 MW Pagbilao baseload plant in Quezon which began construction late
last year and the 340 MW Therma Visayas baseload plant in Cebu to break ground within the year.
Another 300 MW will come from Therma South, which will start operations in the first half of 2015, to provide
much needed power to the Mindanao grid, while its unit three expansion of 170 MW will also begin
construction within the year.
The 68 MW Manolo Fortich hydropower plant in Bukidnon will also start construction within the year, while
the 600 MW Subic baseload plant has only recently overcome its Writ of Kalikasan case.
AboitizPower has also recently forged a partnership with American company SunEdison, to build solar power
plants in the country, and has identified roughly 200 MW of potential run of river power projects located
across the archipelago for the next five years.
###
For further queries on this Press Release, please contact:
MARIA FATIMA B. NUBLA
Corporate Branding and Communication
ABOITIZ POWER CORPORATION
timi.nubla@aboitiz.com
(63) 02 886 2497
(63) 917 581 6970